Chasing Waste

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    Caterpillar Confidential: Green

    Chasing Waste

    Utilizing 6sigma and Caterpillar Production Systems(CPS) to Achieve Environmental Goals

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    Caterpillar Confidential: Green

    Facility Overview

    Facility Opened in March 1998

    30 Acre Site

    183,000 Square Feet

    Current Active Employees

    15 Caterpill ar Management 155 Caterpil lar Hour ly

    15 Contract Workers(Maintenance and ChemicalManagement)

    Second Largest ManufacturingEmployer in Oxford

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    Caterpillar Confidential: Green

    TornadoFebruary 5, 2008

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    Caterpillar Confidential: Green

    2009 Environmental Goals and Accomplishments

    Goal: 90% recycled material (Year end results 97%) Goal:

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    6Sigma

    Caterpillar launched 6Sigma globally in 2001. 6Sigmamethodology is used to focus on real problems. It allowsquick results and helps sustain improvements.

    DMAIC ProcessDefine How is business impacted?Measure What is the extent of the problem?

    A nalyze What is the root cause?

    Improve What is the solution?Control Implementation plan

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    6Sigma (Reduction of Spent Cleaner- Example)

    Define Spent cleaner volumes were too highMeasure Drag out and carryover was contaminating cleaner

    tanks

    A nalyze Barrels are not allowed to rotate and drip beforemoving to next station

    Improve Add dwell time and rotation to programs to allowexcess material to drain before moving to next station

    Control Train employees and Implement changes to allStandard work documents

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    Caterpillar Production Systems (CPS)

    In 2006 Caterpillar implemented CPS to provide commonalityacross the various processes

    CPS consists of three sub systems and fifteen guiding principles

    The Operating system is focused on waste elimination using 6Sigma andlean tools. Guiding principles are; Chase Waste, Pull, Make ValueFlow, Drive Standard Work,Even the Load, and Validate ourprocesses

    The Cultural system is focused on making change possible andimproving the way we work. Guiding principles are; Put Safety Firs t,Take the Customers View, Go,See,Act, Stop to Fix, DevelopPeople.

    The Management system is focused on creating measurements and themanagement structure to support continuous improvement. Guidingprinciples are; Actively Listen, Make it Visual, Align the Targets, Ac tDecisively

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    8 Wastes

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    Caterpillar Production Systems (CPS)

    Make it Visual/Align the Targets Communicate goals and postresults so that employees can see progress.

    Make Value Flow - Standardized scheduling and flow at the phosphatecoating operation reduced waste from over processing and re-work.

    Go,See,Act Empower employees to make suggestions and reportactivities that dont comply with procedures (Continuous Improvement

    cards). Drive Standard Work - Standard Work created to shutdown boilersand other high energy use equipment during extended shutdownperiods.

    Develop People Establish training program for all employees onwaste minimization and recycling program.

    Validate our Processes Investigation of water usage created6Sigma project to reduce water consumption through flow restrictionand recycling of water.

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    Questions?

    Thank You!